Bank of Uganda said its foreign-exchange reserves rose 56% to $6.7 billion in the year ended June 2026. The stock increased from $4.3 billion a year earlier, according to the central bank's annual report. The new level was equivalent to 3.7 months of prospective import cover. That remained below the bank's four-month target.
The increase strengthens the central bank's buffer against external-payment pressures after a period of rapid currency depreciation. Uganda's shilling had fallen through record lows in recent weeks as importers, energy companies and telecommunications groups sought dollars. The bank has said it does not defend a fixed exchange-rate level, although it can act to smooth excessive volatility. Larger reserves therefore provide greater operating room without changing that policy framework.
RESERVE DIVERSIFICATION
Bank of Uganda also plans to increase gold purchases during the financial year ending June 2027. Its reserve-management material describes monetary gold as a strategic store of value that can diversify the portfolio during periods of global uncertainty. The bank says implementation is being phased and supported by governance, risk-management and operational arrangements.
The gold programme adds a domestic channel to the bank's reserve-building strategy. The International Monetary Fund has previously said the programme could support reserve accumulation, while warning that price, liquidity, operational, anti-money-laundering and reputational risks require strong safeguards. The next purchases will therefore test both the diversification case and the controls around sourcing and valuation.
EXTERNAL BUFFER
Uganda's improved reserve position followed strong export receipts, including coffee and gold, alongside continued capital-goods imports. The IMF reported gross reserves of $6.1 billion at the end of May, equivalent to about 2.7 months of goods and services imports under its methodology. The central bank's June figure and forward-import-cover measure are later and use a different reference point, so the two ratios are not directly interchangeable.
The central bank's next annual and monetary-policy disclosures will show whether reserves remain above $6.7 billion as energy costs and dollar demand affect the external balance. Progress towards the four-month import-cover target will be the clearest near-term measure of additional resilience. Investors will also watch how much gold is acquired and whether the bank publishes further detail on the programme's safeguards.